About the Company
Lukoil is an oil and gas company, specializes in oil and gas exploration, refining, transportation, marketing and distribution. The company produces petroleum products and petrochemicals, their products are sold internationally in Russia, Eastern and Western Europe, near-abroad countries and the USA.
The company is operating under the following segments: Exploration and Production, Refining, Marketing and Distribution and Corporate and Other.
Lukoil was founded by Vagit Alekperov on November 25, 1991, headquartered in Moscow, Moscow. The company’s date of IPO was on April 18, 20013 registered under the ticker MCX:LKOH.
PJSC Lukoil Company Extended Graph Analysis
1. LKOH CASH FLOWS
|Net cash provided by operating activities||865,369,697,920||848,972,000,000||752,247,000,000||758,490,000,000||1,006,651,000,000||1,109,952,000,000|
|Net cash provided for investing activities||-813,952,240,920||-525,722,000,000||-500,343,000,000||433,286,000,000||420,392,000,000||415,243,000,000|
|Net cash provided by (used for) financing activities||58,921,626,400||-253,063,000,000||-193,134,000,000||247,395,000,000||468,549,000,000||523,214,000,000|
|Free cash flows||51,417,457,000||247,647,000,000||252,568,000,000||246,382,000,000||554,972,000,000||678,101,000,000|
- Cash from operating activities were RUB 1.1 trillion in 2019.
- Cash provided for investing activities were RUB -415 billion in 2019.
- Net cash from financing activities were RUB -523 billion in 2019.
- Capital expenditures were RUB -431.9 billion in 2019.
- Free cash flows were RUB 678 billion in 2019.
- Cash from operating activities increases year-over-year as net income increases year-over-year.
- Cash from investing activities were the investment in property, plant and equipment; acquisitions, purchases of investments and purchases of intangibles.
- Net cash provided by financing activities were debt repayment, common stock repurchased, dividend paid and other financing activities.
- Capital expenditures are investments in property, plant and equipment.
- Free cash flows had a growth of 1219 percent in five years and increases year-over-year.
The company was efficient in providing cash from operations year-over-year in the last five years. Further, the management was able to provide a positive free cash flow in the last five years.
2. LKOH BALANCE SHEET
|Total current assets||1,265,091,787,960||1,213,647,000,000||1,255,641,000,000||1,308,114,000,000||1,478,479,000,000|
|Net property, plant and equipment||4,528,460,507,480||3,411,153,000,000||3,391,366,000,000||3,575,165,000,000||3,829,164,000,000|
|Total non-current assets||4,949,472,204,040||3,806,960,000,000||3,759,023,000,000||3,918,101,000,000||4,253,903,000,000|
|Total current liabilities||789,994,485,280||695,168,000,000||830,686,000,000||958,847,000,000||914,560,000,000|
|Total non-current liabilities||914,841,629,520||1,102,971,000,000||963,107,000,000||784,417,000,000||752,262,000,000|
|Total stockholders’ equity||4,509,727,877,200||3,222,468,000,000||3,220,880,000,000||3,482,951,000,000||4,065,560,000,000|
- Cash was RUB 518.9 billion in 2018.
- Current assets were RUB 1.478 trillion in 2018.
- Net property, plant and equipment was RUB 3.8 trillion in 2018.
- Non-current assets were RUB 4.254 trillion in 2018.
- Total assets were RUB 5.7 trillion in 2018.
- Short-term debt was RUB 99.6 billion in 2018.
- Current liabilities were RUB 914.6 billion in 2018.
- Non-current liabilities were RUB 752 billion in 2018.
- Total liabilities were RUB 1.667 trillion in 2018.
- Shareholders equity was RUB 4.066 trillion in 2018.
- Cash has a growth of 188 percent in five years and it represents 35 percent of current assets.
- Current assets increased by 17 percent in 5 years and it represents 26 percent of total assets.
- Net property, plant and equipment decreased by 15 percent in five years and it represents 90 percent of total non-current assets.
- Non-current assets decreased by 14 percent in five years and it represents 74 percent of the total assets.
- Total assets decreased by 8 percent due to property, plant and equipment.
- Short-term debt represents 11 percent of total current liabilities.
- Current liabilities represents 55 percent of total liabilities.
- Non-current liabilities represents 45 percent of total liabilities.
- Total liabilities represents 29 percent of the total liabilities and equities.
- Stockholders equity represents 71 percent of the total liabilities and equities.
The company has a sound balance sheet in the last five years. The company is operating its business using two-thirds of the shareholders investment and one-third using the creditor’s money.
3. LKOH INCOME AND MARKET
|Market Capitalization USD||30,216,000,000||22,762,000,000||40,646,000,000||41,078,000,000||49,695,000,000||66,635,000,000|
|Intrinsic Value USD||31,345,008,852||32,862,137,222||123,791,444,678||119,855,455,079||98,365,393,274||185,462,883,775|
- Revenue was RUB 8.326 trillion or USD 130 billion in 2019.
- EBIT was RUB 860 billion USD 13.455 billion in 2019.
- Net income was RUB 673 billion or USD 10.532 billion in 2019.
- Market capitalization was USD 66.6 billion or RUB 4.260 trillion in 2019.
- Intrinsic value was USD 185 billion or RUB 11.856 trillion in 2019.
- EBITDA was RUB 1.251 trillion or USD 19.574 billion in 2019.
- Revenue was erratic in movement in the last five years and has grown only 4 percent..
- EBIT has a growth of 74 percent in five years.
- Net income has a growth of 155 percent in five years. Further, it represents 8 percent of the total revenue.
- Market capitalization increased by 121 percent in five years.
- Intrinsic value increased by 492 percent in five years. Moreover, intrinsic value was greater by 178 percent against market capitalization.
- EBITDA has a growth of 39 percent in five years.
The company is profitable, the management has proficiently managed its business operation in the last five years.
4. LKOH FINANCIAL RATIOS
|Asset Turnover (average)||1.63||1.02||1.04||1.16||1.47||1.46|
|Return on Asset (ROA) %||5.38||5.18||4.12||8.18||11.3||11.82|
|Return on Equity (ROE) %||7.44||7.53||6.42||12.49||16.41||17.74|
|Financial Leverage (avg)||1.37||1.56||1.56||1.5||1.41||1.53|
|Return on Invested Capital %||6.83||6.71||5.71||10.67||14.51||15.74|
- Asset turnover was averaging 1.46 in 2019.
- Return on assets was 11.82 percent in 2019.
- Return on equity was 17.74 percent in 2019.
- Financial leverage was averaging 1.53 in 2019.
- The return on invested capital was 15.74 percent in 2019.
- Interest coverage 22.62 in 2019.
- Asset turnover indicates that the company is generating $1.46 of net sales for every dollar in assets.
- Return on assets indicates that every dollar invested in the entire asset base produced 0.1182 cents.
- Return on equity indicates that every dollar of shareholders equity generated 17.7 cents in profit.
- Financial leverage indicates that in every dollar in equity LKOH had $1.53 in total assets. $0.53 was borrowed.
- Return on invested capital indicates that 15.74 percent is the return that the company makes over its capital.
- Interest coverage indicates that the company is making more than enough money to cover interest payments 22 times over.
The company is profitable and management is efficient in the performance of its business operations.
5. LKOH KEY EXECUTIVE COMPENSATION
REMUNERATION OF DIRECTORS AND MANAGEMENT COMMITTEE MEMBERS
|Remuneration for performance of duties of a member of the Board of Directors, RUB||6,000,000||6,500,000||6,750,000|
|Total amount paid to members of the Board of Directors, RUB million *||192,400,000||261,100,000||816,800,000|
|Total amount paid to members of the Management Committee, RUB million **||1,636,300||1,738,800||5,502,400***|
* This amount includes, among others, payments to Directors who are employed by the Company but are not members of the Management Committee (such as salary, bonuses and other types of remuneration).
** Including the remuneration of the President of PJSC LUKOIL
*** With due regard for execution of the Regulations on Long-Term Incentives for Employees of PJSC LUKOIL and its Subsidiaries in 2013-2017
- Compensation for performance of duties of a member of a Board of Directors was RUB 6,750,000 in 2018.
- Total amount paid to members of the Board of Directors was RUB 816,800,000 in 2018.
- Total amount paid to members of the management committee was RUB 5,502,400 in 2018.
LUKOIL KEY PEOPLE
|Ravil Ulfatovich Maganov||Executive Director, Vice Chairman|
|Vagit Yusufovich Alekperov||CEO, Director. President|
|Leonid Arnoldovich Fedun/ Executive Director||Executive Director|
|Lyubov N Khoba/ Executive Director||Director, Chief Accountant, President|
6. LKOH LOBBYING AND CONTRIBUTIONS
No Politicians or Lobbyist Found – OpenSecret.org
Center for Responsive Politics
7. LKOH FINANCIAL STRENGTH
|Market value of equity||4,342,735,440,000|
|Book value of total liabilities||1,666,822,000,000|
|A – Working Capital / Total Assets||0.10||1.20||0.12|
|B – Retained Earnings / Total Assets||0.69||1.40||0.97|
|C – EBIT / Total Assets||0.15||3.30||0.50|
|D – Market Value of Equity / Book Value of Total Liabilities||2.61||0.60||1.56|
|E – Sales / Total Assets||1.45||1.0||1.45|
Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.
Lukoil has a Z-Score of 4.60. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy. In other terms, the company is not close to insolvency. The main factors of this statistical measurement is the profitability, liquidity, leverage and efficiency.
Reseahttps://www.morningstar.com/stocks/xlon/lkoh/quoterched and written by Criselda